Financial Reports

Thu, 25 Feb 2016

Year-end report 2015

JANUARY – DECEMBER 2015
- Net sales amounted to SEK 283.2 (187.7) million

- EBITDA was SEK 12.8 (-34.1) million
- Basic earnings per share were SEK -0.27 (-0.82)

OCTOBER – DECEMBER 2015
- Net sales amounted to SEK 72.4 (60.3) million

- EBITDA was SEK 3.6 (-1.4) million
- Basic earnings per share were SEK -0.06 (-0.09)

SIGNIFICANT EVENTS
Significant increase in net sales and gross profit during the year
- Net sales increased by 51% to SEK 283.2 million
- Gross profit increased by 88% to SEK 132.5 million

Positive EBITDA of SEK 12.8 million for the year
- Strong sales growth and improved gross margin
- Higher volumes provide economies of scale

Future outlook 2016
- Maintained net sales
- Positive EBITDA

OPERATIONS
Strong sales growth and higher profitability
In 2015, Bluefish experienced strong growth in sales and higher profitability. Besides the expected sales growth in Spain, which was fueled by deliveries associated with tenders that had been won, there was also growth in the Nordic market, particularly in Sweden, where sales were considerably higher than the same period last year. For full-year 2015, net sales increased by 51% to SEK 283.2 (187,7) million, of which SEK 91.5 (64.5) million in the Nordic region, SEK 186.0 (118.5) million in Rest of Europe and SEK 5.7 (4.7) million in Rest of World. The distribution of sales across Nordic, Rest of Europe and Rest of World has remained basically the same, despite the strong growth in sales.

The increase in sales is also associated with an improvement in gross margin. For the full-year 2015, gross profit increased by 88% to SEK 132.5 (70.4) million compared to last year, which has also resulted in positive EBITDA of SEK 12.8 (-34.1) million. Accordingly, an important goal has been achieved, in that the higher level of sales and gross profit achieved by the company in 2015 makes it easier to leverage the existing company structure. The positive sales development and improved profitability is also reflected in the company’s cash flow. Cash flow from operating activities was positive at SEK 48.5 million for the 2015 financial year. 

Well-equipped for further growth
Efforts continued during the year to develop the organization. In order to meet the new market conditions and create competitive advantages, the organization has been developed and new positions have been filled. The leadership team was expanded by appointing a Chief Operating Officer, responsible for making the company's supply chain more efficient, which requires a strategic coordination of the activities within purchasing, logistics, quality assurance and regulatory affairs,  and a Head of Business Development, responsible for identifying and developing business opportunities, along with optimizing the product portfolio. The sales organization was also reorganized, thereby creating the business areas Northern Europe and Southern Europe.

Development of the product portfolio
The composition of the product portfolio in each market is critical to the company’s future growth and profitability. The expected earnings potential of products is also continually evaluated. Endeavors to optimise the portfolio continued, which, during the year, involved deregistration of numerous market approvals where maintenance costs were high and Bluefish considered there to be limited potential for generating income. To ensure the company’s further growth, it is necessary to supplement the product portfolio with products that can make a valuable contribution to sales growth and enhanced profitability. Thus, the company continued investing in new product licenses and development projects. Investments are made selectively and only in the markets where Bluefish believes there is high potential in terms of both sales and profitability. During the fourth quarter, the product portfolio grew with the addition of four licensed products for a diverse number of markets. In total, 12 new products were added to the portfolio in 2015. The products are expected to be launched during the latter part of 2016 and 2017.

Meanwhile, the registration procedures for the company’s two products developed in-house are progressing in accordance with plan, with expected launches in several of Bluefish’s most important market during the latter part of 2016 and 2017.

FUTURE OUTLOOK
The growth in sales and improved profitability in 2015 has created a strong platform for the company’s continued development. The company expects both sales and profitability to stabilize in the coming year at comparable levels to 2015, even though fluctuations will likely occur between quarters. New product launches during the latter part of 2016 and 2017 are expected to refuel sales growth, along with having a positive impact on profitability over time. 

For more information, contact

Karl Karlsson, President & CEO Bluefish Pharmaceuticals
Tel. 46 8 519 116 00
Email: karl.karlsson@bluefishpharma.com

Susanna Urdmark, CFO Bluefish Pharmaceuticals
Tel. 46 8 519 116 00
Email: susanna.urdmark@bluefishpharma.com

About Bluefish Pharmaceuticals
Bluefish has undergone significant international expansion since the company was founded in 2005. Bluefish focuses on the development, manufacture and sale of generic pharmaceuticals. The company conducts marketing operations in a large number of European markets and is expanding into territories outside Europe. The product portfolio consists of a total of approximately 80 products and is growing.

www.bluefishpharma.com

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